Olectra awarded Letter of Intent worth Rs 10,000 crore for 5150 e-buses by MSRTC

The consortium of Olectra Greentech and EVEY Trans has been awarded a Letter of Intent (LoI) from the Maharashtra State Road Transport Corporation (MSRTC) to supply, operate, and maintain 5,150 electric buses and allied electrical and civil infrastructure. The contract is worth approximately Rs 10,000 crore and will be operated over a period of 12 years.

EVEY will procure the buses from Olectra, which will also be responsible for their maintenance during the contract period of 12 years on a gross cost contract (GCC) basis.

Olectra Greentech is now proposing to extend its capacity at its new greenfield plant in Telangana to 5,000 units from the present 1,800 units, which is scalable up to 10,000 vehicles per year. 

The company already operates 40 electric buses for BEST in Mumbai, in addition to several STUs like Pune, Hyderabad, Goa, Dehradun, Surat, Ahmedabad, Silvassa, and Nagpur.

The development comes months after the Supreme Court in May dismissed an appeal by Tata Motors, challenging the Brihanmumbai Electric Supply and Transport's (BEST) decision to disqualify the company from a tender bid for supplying 2,100 electric buses in Mumbai.

BEST had earlier disqualified Tata Motors' bid as "technically non-responsive" and awarded the contract to Hyderabad-based Evey Trans. The court upheld BEST's decision, saying that there was no merit in Tata Motors' plea.

While Maharashtra State Road Transport Corporation (MSRTC) provides passenger road transport services across the State of Maharashtra, BEST which stands for Brihanmumbai Electricity Supply and Transport is a public transportation provider in Mumbai.

(This is a representational image)